Purchasing a rental property as an investment in Vancouver, BC, is a risky business that also can bring in quite a bit of revenue. There are disadvantages and advantages of owning rental property.
The biggest advantage of owning Vancouver rental property is that it can provide you with a regular income. You will usually receive a monthly rental payment from your tenants that rent from you. If you purchase rental units in new neighborhoods like Yaletown, False Creek, Kits and others, with a low crime rate you will be likely to fill that unit up fast.
You can also take advantage of purchasing vacation rental property, which is also a very lucrative investment. You can make a profit renting out rooms and houses by the day, week, month, or even season. In the process you can make quite a bit of profit off of vacation rental property, especially if you own vacation property in a popular visiting location, like Vancouver, Yaletown, False Creek or Whistler, BC.
One of the disadvantages of buying rental property is the cost and responsibility of upkeep. You are the owner, so you will be responsible for providing lawn maintenance, plumbing repair, as well as basic upkeep such as replacement of windows, locks, and more. It can be quite expensive, especially if you have a large property, because you will have to hire other people to do the maintenance for you.
Another disadvantage is that it could be hard to find a good renter in Vancouver. However, you have the right to choose who you want to rent in most cases. You will have to be careful in regards to discrimination, however. So you will need to be careful.
Your rental property can go up in value instead of down in value if you keep that property in as good of a shape as possible, especially in hot markets like Vancouver and Whistler. Also, if you have kept that property for a while and have made a profit from it that will also be a sing for both lenders and buyers that the property you have rented out will be of value.
One way to make your experience as a landlord (or landlady), which is what you are if you purchase Vancouver rental property for the benefit of making a recurring profit, is to require your tenants to sign leases. In that lease will be all the rules and provisions that you would expect your tenants to live by.
Just think, when you draw up a lease agreement, you can think of all the landlords you used to despise, and you now get to be like them. It’s not that you have to be mean, but you will need to have a backbone if you expect to be able to enforce the leasing agreement that you have written up between you and your tenants.
Quite a bit of information is covered in leases. For example, if decide to own an Vancouver apartment complex you will have to designate quite hours and times to do laundry. If you own a luxurious hotel you may require a deposit on the room key or other valuables within the room. You are advised to write up as extensive of a lease necessary to help keep peace between you and your tenants.
Not only would you include your tenant’s responsibilities and the rules in the leases that you create, but also the tenant’s rights. If they have a question or concern they will want you or someone in your office to take care of it as soon as possible. Concerns that tenants may have are excessively loud tenants, abuse in the building, theft, vandalism and so on. This is being told to you to scare you out of being a landlord, but to prepare you for anything to happen-both good and bad.
If you think that you are up to the challenge of purchasing rental property in Vancouver you will need to decide which types of rental properties are the best for you. If you decide after all that rental property is not the right type of real estate venture for you, chances are you can sell your rental property to someone else.
In fact, if you keep up the rental property for the time you have it you can possibly sell it for a higher price than you paid for it. Make sure you take good care of your rental property in case you would like to sell it later on.
To read more about landlord and tenant responsibilities you can contact your local Vancouver housing office. Your local housing office may even have a website address you can visit. A good realtor like Amalia Liapus, A top RE/MAX realtor can also help you.
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Monday, November 26, 2007
Wednesday, November 7, 2007
Top Tips for Buying Property at an Auction
Buying property at an auction can be risky business. Usually each property is sold as is, with no refunds. However, you can do quite a few things to ensure that you find quality Vancouver real estate at these auctions.
Some of the tips to keep in mind before buying a home at a real estate auction include the following:
Make sure you purchase from a trusted dealer. You want to either purchase from a name you trust or from an agent who has proven that he or she has a good track record. Trusted real estate agents will have references from past clients as well as a good standing with organizations such as the Better Business Bureau, and will have a good credit rating.
Get the deal in writing and have it signed. Not much needs to be said about this. No contract should be verbal because it is hard to prove in court, and both parties may forget what has been said in the agreement. Get all deals in writing. That is the bottom line. Handshakes were necessary in the old days but this is a new generation. You need to protect your self and your business as much as possible.
If possible involve a lawyer. If you can afford a lawyer or other qualified legal aid to be present when you sign a deal with someone, it would benefit you and your company. You also may need advice from a solicitor or chartered surveyor during the process of purchasing a property, as well as a professional appraiser.
Study the Lower Mainland property being sold before purchase. You can even order a catalog from some auctions that plan their sales weeks in advance of posting. Some listings will run for quite awhile. Read all the information that you see regarding properties for sale very carefully and identify ones that would be of most interest to you.
Ask neighbors and agents for their opinion. While you are doing research on the property that you are thinking of purchasing a Vancouver home through an auction, you will want to ask neighbors and agents for their personal opinion. This will give you an idea of how legitimate the sale really is, and you will learn whether or not it is worth it to purchase a particular property as well.
Make sure the listing of the property is accurate. The listing should be straightforward, and you should be able to know what exactly you are getting your self into.
Beware that bidding is a binding contract. This type of contract is as legal as the one that is signed between two private parties. If you are attending a live auction in person beware that when the hammer falls or the auctioneer yells “sold” that you are legally committed to purchasing the item that you have bid on. Make sure you bid on a piece of property that you know you want. This will cause you less stress later on.
Make sure you have deposit ready for auction day. If you do not have your deposit ready in order to purchase property at an auction you could lose your chance of purchasing that property. Usually you will need to pay that deposit within a two-week period.
Plan ahead if you need a loan. If you need to take out a loan to purchase auction property you will want to make sure you find a way to obtain that money before the date of the auction. If you do not, you will need to find a way to finance your purchase within 20 days of the day of the auction. Otherwise, you will lose the sale and any deposit you put down on the sale.
Be careful during the bidding process. Make sure you are bidding on what you want to bid on. Also, if you do not want to bid on a property make sure you careful what type of message you send. For example, auctioneer sees you making a hand gesture during the bidding process they could mistake it for your desire to bid. Make sure you communicate this message very carefully, and only if you truly intend to bid. This is a very serious process.
Make your intent to bid very clear. If you choose to bid at an auction that you will attend in person you will want to make sure you make that very clear. You will need to raise your hand up high enough when the auctioneer calls out for more bids. Also, it will help if you sit where you will be seen.
Decide on a definite maximum bid price. Watch yourself, and don’t bid higher than you can afford. Remember, you are at an auction to save money, not to spend even more money. If you cannot bid at a price you can afford perhaps you can entrust someone to bid on your behalf.
Sometimes, if you cannot physically attend an auction, you can present your bid in writing or by telephone. Other times that same auction will be available online as well.
There is so much involved in purchasing in an auction. However, if you know for sure what you are looking for and you do your homework you could walk away with some fine deals from an auction. You can find quite a few online resources to auctions to take a look at.
Most auction services will cost you a small membership fee, which is usually paid once in a lifetime or monthly. The fee charged to become involved in buying at real estate auctions varies from auction to auction. You can find legitimate real estate auction agents who market themselves both online and offline.
For more information on buying or selling your home in Vancouver, including Yaletown, Kits, Point Grey, and False Creek, visit Amalia Laipis, ReMax realtor at www.wesellvancouver.ca.
Some of the tips to keep in mind before buying a home at a real estate auction include the following:
Make sure you purchase from a trusted dealer. You want to either purchase from a name you trust or from an agent who has proven that he or she has a good track record. Trusted real estate agents will have references from past clients as well as a good standing with organizations such as the Better Business Bureau, and will have a good credit rating.
Get the deal in writing and have it signed. Not much needs to be said about this. No contract should be verbal because it is hard to prove in court, and both parties may forget what has been said in the agreement. Get all deals in writing. That is the bottom line. Handshakes were necessary in the old days but this is a new generation. You need to protect your self and your business as much as possible.
If possible involve a lawyer. If you can afford a lawyer or other qualified legal aid to be present when you sign a deal with someone, it would benefit you and your company. You also may need advice from a solicitor or chartered surveyor during the process of purchasing a property, as well as a professional appraiser.
Study the Lower Mainland property being sold before purchase. You can even order a catalog from some auctions that plan their sales weeks in advance of posting. Some listings will run for quite awhile. Read all the information that you see regarding properties for sale very carefully and identify ones that would be of most interest to you.
Ask neighbors and agents for their opinion. While you are doing research on the property that you are thinking of purchasing a Vancouver home through an auction, you will want to ask neighbors and agents for their personal opinion. This will give you an idea of how legitimate the sale really is, and you will learn whether or not it is worth it to purchase a particular property as well.
Make sure the listing of the property is accurate. The listing should be straightforward, and you should be able to know what exactly you are getting your self into.
Beware that bidding is a binding contract. This type of contract is as legal as the one that is signed between two private parties. If you are attending a live auction in person beware that when the hammer falls or the auctioneer yells “sold” that you are legally committed to purchasing the item that you have bid on. Make sure you bid on a piece of property that you know you want. This will cause you less stress later on.
Make sure you have deposit ready for auction day. If you do not have your deposit ready in order to purchase property at an auction you could lose your chance of purchasing that property. Usually you will need to pay that deposit within a two-week period.
Plan ahead if you need a loan. If you need to take out a loan to purchase auction property you will want to make sure you find a way to obtain that money before the date of the auction. If you do not, you will need to find a way to finance your purchase within 20 days of the day of the auction. Otherwise, you will lose the sale and any deposit you put down on the sale.
Be careful during the bidding process. Make sure you are bidding on what you want to bid on. Also, if you do not want to bid on a property make sure you careful what type of message you send. For example, auctioneer sees you making a hand gesture during the bidding process they could mistake it for your desire to bid. Make sure you communicate this message very carefully, and only if you truly intend to bid. This is a very serious process.
Make your intent to bid very clear. If you choose to bid at an auction that you will attend in person you will want to make sure you make that very clear. You will need to raise your hand up high enough when the auctioneer calls out for more bids. Also, it will help if you sit where you will be seen.
Decide on a definite maximum bid price. Watch yourself, and don’t bid higher than you can afford. Remember, you are at an auction to save money, not to spend even more money. If you cannot bid at a price you can afford perhaps you can entrust someone to bid on your behalf.
Sometimes, if you cannot physically attend an auction, you can present your bid in writing or by telephone. Other times that same auction will be available online as well.
There is so much involved in purchasing in an auction. However, if you know for sure what you are looking for and you do your homework you could walk away with some fine deals from an auction. You can find quite a few online resources to auctions to take a look at.
Most auction services will cost you a small membership fee, which is usually paid once in a lifetime or monthly. The fee charged to become involved in buying at real estate auctions varies from auction to auction. You can find legitimate real estate auction agents who market themselves both online and offline.
For more information on buying or selling your home in Vancouver, including Yaletown, Kits, Point Grey, and False Creek, visit Amalia Laipis, ReMax realtor at www.wesellvancouver.ca.
Monday, November 5, 2007
Vancouver Real Estate Performing Above It's Weight Class
The recession risks are even less in Canada. The economy had strong momentum in the first half of 2007, with real GDP advancing at a 3.9% annualized pace in the first quarter and 3.4% in the second quarter. While the recent financial turmoil and the lingering problems in the asset-backed commercial paper market and real estate markets will temper the pace of expansion in the coming quarters, the impact should prove modest.
There is no reason for Canadian lenders to tighten their credit standards in a significant way, since they were never loosened like in the United States. The subprime mortgage market in Canada was only roughly 5% of mortgage originations in 2006, compared to 25% Stateside. Exotic mortgages, like negative amortization mortgages, and low introductory teaser mortgage rates are not part of the Canadian, BC, or Lower Mailnad Realty landscape. The continuing pressure in short-term private sector financing rates, with a wider spread on Banker Acceptance (BA) rates over their government counterparts may have a negative impact in the near-term, but we believe that conditions will normalize over time. And, the current levels of borrowing costs for the economy suggest that the financial turmoil has had less impact than the equivalent of a quarter point tightening by the central bank.
Read more about Vancouver Real Estate.
There is no reason for Canadian lenders to tighten their credit standards in a significant way, since they were never loosened like in the United States. The subprime mortgage market in Canada was only roughly 5% of mortgage originations in 2006, compared to 25% Stateside. Exotic mortgages, like negative amortization mortgages, and low introductory teaser mortgage rates are not part of the Canadian, BC, or Lower Mailnad Realty landscape. The continuing pressure in short-term private sector financing rates, with a wider spread on Banker Acceptance (BA) rates over their government counterparts may have a negative impact in the near-term, but we believe that conditions will normalize over time. And, the current levels of borrowing costs for the economy suggest that the financial turmoil has had less impact than the equivalent of a quarter point tightening by the central bank.
Read more about Vancouver Real Estate.
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